Foreign transactions on the Nigerian equities market fell by 75% month-on-month to N114.14 billion in January 2026, as overall trading activities on the Nigerian Exchange declined sharply despite strong year-on-year growth.
This is according to the latest Domestic and Foreign Portfolio Investment Report released by the Nigerian Exchange Limited (NGX). The report attributes the steep drop in foreign participation largely to the absence of large block trades that had boosted turnover in December 2025, leading to a normalization of activity levels.
The decline in foreign flows contributed to a 37.6% drop in total transactions in January, even as the market recorded significant growth compared to the same period last year. While monthly activity weakened, year-on-year data points to sustained investor interest in the Nigerian equities market.
What the data is saying
The NGX data analysed by Nairametrics indicate a sharp drop in foreign flows and softer domestic participation in January 2026. Total transactions on the Exchange declined by 37.55% month-on-month to N861.97 billion in January, down from N1.380 trillion recorded in December 2025, as both domestic and foreign investors reduced activity.
- Foreign participation dropped by 75% to N114.14 billion in January 2026, from N458.09 billion in December 2025.
- Foreign investors accounted for 13.24% of total transactions in January and were net sellers, withdrawing approximately N18.42 billion from the market.
- Total foreign inflows stood at N47.86 billion, while outflows reached N66.28 billion, resulting in a negative net foreign position for the month.
Despite the pronounced month-on-month slowdown, total market transactions rose by 41.99% year-on-year from N607.05 billion in January 2025 to N861.97 billion in January 2026, reflecting stronger activity compared to the corresponding period last year.
More insights
Domestic investors consolidated their dominance during the review period, accounting for the bulk of trading activity on the Exchange. Domestic transactions amounted to N747.83 billion, representing 86.76% of total trading activity in January 2026.
- Institutional investors accounted for N387.97 billion in trades, while retail investors recorded N359.86 billion, translating to a 52%–48% split in favour of institutions.
- Institutional participation declined by 35.73% month-on-month.
- Retail activity increased by 12.92% within the same period.
- Overall domestic transactions fell by 18.92% from N922.31 billion in December 2025.
Although domestic transactions declined compared to December, the resilience in retail participation suggests sustained engagement by individual investors, even as foreign portfolio flows remain volatile.
What you should know
In comparative terms, January 2025 also recorded weaker trading activity on a month-on-month basis. Total transactions declined by 9.89% to N607.05 billion in January 2025, from N673.66 billion in December 2024, and represented a 6.83% decline compared to N651.52 billion recorded in January 2024.
- Foreign transactions in January 2025 improved by 7.13% or N4.76 billion to N71.51 billion, up from N66.75 billion in December 2024.
- The percentage inflow during the January 2025 period moderated by 2.29% to N25.66 billion, down from N26.26 billion in December 2024.
- Foreign outflows in January 2025 rose by 13.24% to N45.85 billion, up from N40.49 billion in December 2024.
Despite the increase in total foreign transactions in January 2025, foreign outflows rose significantly, resulting in a net foreign outflow position and reinforcing a trend that has persisted into January 2026.
